Someone said to me the other day, “since we are in a recession, give me one good reason why I should invest in real estate?”  

It caught me off guard , I couldn’t even answer the question because it was just too overwhelming to me .  I couldn’t see how someone could be so naive.  But now that I’ve gained my composure back, I would like to answer that question with not just one reason, but with 50! 

But before we get into this, I want to touch on just a couple of things.  Real estate investing consist of several investing strategies.  This includes purchasing rental properties, commercial properties, personal homes, land, real estate notes, real estate contracts, financing, etc.  People have the misconception that real estate investing is simply buying a property and renting it out, but that’s not the case. 

We must understand that today’s media is giving real estate investing a bad rap.  The reason homes are not selling at a faster rate is not totally due to the condition of the economy, but the media.  They literally have people afraid to invest in real estate.

So we MUST get over this fear of the market’s condition.  We must use fear, and don’t be afraid of fear.  We must respect it, keep going, and move past it.  This is how one overcomes their fear of, in this particular case, investing. 

The savvy investors who are investing in the current market are just enjoying the fact that they can literally buy what they want for basically what price they want.  This is one of those cases where the rich are just getting richer, literally. 

So why everyone else is falling victim to “This Market Sucks!”, here are 50 reasons to invest in real estate right now, more importantly wholesale real estate!

1.   Affordability is better then ever:  According to the National Association of Realtors’ housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
2.   Mortgage rates are historically low:  Rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.)
3.  You have a large inventory to choose from:  A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
4.   Home prices are dropping:  Home foreclosures have a close relation with home prices, and the fact that so many people have been forced to foreclose make it easy to predict that the price of homes across the country have dropped a great deal.
5.   Less buyers means more negotiating power for you:  Those real estate agents still need to sell their homes, and the fact that there exists less competition on the homes you’re considering could translate into better savings for you. Be smart when talking to agents, and remember that the struggling market has given you the upper hand in determining price.
6.   Desperate times call for desperate measures for the FHA, more lending: Last year, over 630,000 individuals bought homes in part because of the FHA’s low down mortgage rate, and there are many experts who believe that FHA loans have been the driving force behind real estate sales recently.
7.   Appreciation:  Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.
8.   Property Tax deductions:  Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes.
9.   You could get a federal tax credit:  Purchasing a personal home is still an investment in real estate.  There’s currently a federal tax creditof up to $8,000 for home buyers who haven’t owned a home in at least three years for homes bought between Jan. 1 and Nov. 30 of this year, 2009.  That money would not have to be paid back if the home is not resold for at least three years.
10.   Builders are offering huge discounts:  Home builders are getting more aggressive with their pricing to compete with the steady rising number of all ready existent homes on the market.
11.   Mortgage interest deductions:  Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.
12.   No bidding wars:  In 2005, it was nothing to have multiple offers on one property.  Today there’s much less competition when bidding on homes. 
13.   Pride of ownership:  Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.
14.   Due diligence is welcomed:  Because buyers have very little if any competition, they no longer have to waive their inspection rights to make the offer more attractive.  Today it is expected that a buyer will order a general home inspection. 
15.   We may be near the bottom of the market decline:  This is pure speculation.  No one knows when the market will stop tanking.  Though some markets are reporting increased sales volume. 
16.   Price Correction:  The economic slowdown had an impact on this sector. The rates have come down over the past few months. Wouldn’t it make a lot more sense to invest in real estate when a price correction is taking place rather than in a heated market?
17.    You can use OPM “Other Peoples Money” to invest in real estate:  There are a number of ways to use OPM.  The best is through seller financing.  Have the seller hold a note for a property and create some desirable terms.  We’ve managed to buy and sell several homes using seller financing this year alone. 
18.   A Homeowner can Increase the Value of his/her Asset:  Aside from fixing small things, a home owner can add a room onto a house, paint the bedrooms, and update the appliances in the latest, most efficient manner. As a result he could possibly turn this $150,000 home into a $200,000 home overnight.
19.   Stability:  Real estate is less volatile than stocks. While real estate may be less liquid, and you may have to wait indefinitely before a buyer agrees to purchase your property for the price you seek, the prices are not as volatile as the stock markets. The transition towards a correction or boom takes place gradually, giving ample time for investors to read the transition and safeguard their positions.
20.   Real Estate investing is considered a business: You can use the expenses from it and deduct them from your taxes.  Anything that you purchased, had repaired, any fees and anything else related to the investment in question.
21.   Good long term returns:  Investments in property has always proved to be stable and yielded good returns over the long term. With lesser risk and probability of higher returns, this is a much favored investment option.
22.   Peace of Mind:  Getting back to maximum utility, home ownership provides peace of mind to the many who have purchased within their means.
23.   Good in a Recession:  Some investments are considered safe in times of recession like precious metals and foreign currencies. In this list of investments that are popular during times of financial uncertainty, real estate can be included. Focus on achieving positive monthly cash flows rather than immediate appreciation.
24.   They’re not making any more land:  Land is the cheapest it’s been in years.  Now is the time to jump on the bandwagon and buy all the land you can that makes sense.  Land can be purchased easy now using seller financing.  Raw land development is the most profitable form of real estate.
25.   Population in America is steady rising:  The prediction is, there will be a housing shortage in the future.  The population is growing at an astounding rate, especially since unemployment is up.  Now that housing construction has slowed to a pulp, the need for housing will increase dramatically in the near future. 
26.   Cash Flow:  If you invest in real estate right, it will cash flow for you.  Even in the down market, you can get your properties to cash flow very well.  This all stems from buying the property right and utilizing proper management techniques.
27.   Because no one else is:  I’ve learned that you always want to do the opposite of what the majority are doing.  Currently its a buyer’s market, because everyone is selling.  So in a buyer’s market you want to buy and the conditions are favorable for you.  If it is a seller’s market, you want to sell cause the conditions are favorable for you as well again.
28.   Obtain tax-free cash:  When you refinance your home, the money you pocket is tax free because it is a loan.  If you purchased your properties right, they’re cash flowing well, and your credit is fair, you should be able to refinance. 
29.   1031 Exchanges:  A 1031 exchange is when an investor uses profits from one property sale and invest them in another property, they can hold off on capital gains for future real estate transactions. More than likely, the investor will work on getting additional equity and more income and profits from additional property rentals.
30.   Repairs are welcomed:  After you have received your home inspection reports, you are allowed to submit a repair request, which asks the seller to repair certain conditions or allow you to back out of the contract if the seller will not make the repairs.
31.   Patience is tolerated:  In hot sellers’ markets, everything tends to get rushed: the house hunting, the offer-writing, the negotiating, everything.  Now, a buyer can take his/her time looking through the Multiple Listing Service, and visiting several homes, before making an offer.
32.   Because my mentor said so:  I believe that you listen to those that are doing what you want to do and are successful.  My mentor, Roger Salam, said that now is the time to invest in real estate.  You definitely don’t want to take real estate investing advice from someone who isn’t successful in investing. 
33.  Mass majority of the wealthy people made their money in real estate:  I always learned that if it’s not broke, don’t fix it.  More then 50% of the nations millionaires made their money investing in real estate. 
34.   Renter pays off mortgage:  If you have a mortgage on your home and you are renting it out, then the renter is essentially paying off your loan for you. Depending on how your monthly mortgage payment compares to the rent you are charging, the renter pays the money you owe to the bank in interest and pays to decrease the overall principle owed.
35. 35.  Retirement vehicle:  There are many different methods of saving for retirement. While I don’t advocate any one method over another, a home can be used in many ways during one’s golden years.
36.   Bird dogs will bring you a deal:  If you want to invest in real estate now, you can do so without searching for properties yourself.  All you have to do is let the bird dogs know exactly what you are looking for, and they will bring you a great deal with pictures, videos, etc.  Wholesalers are plentiful in the market and have networks of Realtors and associates that can obtain the deal you need. 
37.   Cash is KING:  If you have the money siting making a lousy 3% return, invest in real estate and increase your return.  Just be sure to buy it right.  Cash is king and in this market, you can rule with an iron fist.
38.    You don’t need a lot of money:  In today’s market, you don’t need a lot of money to purchase a house.  If you know how to buy a house, you can purchase several.  A partner of mine used $10K to buy 4 homes.  It’s all about knowing how to buy houses. 
39.   Property is something tangible that you can use and enjoy:  Unlike stocks, property is an investment that can be used and enjoyed by you and your family. 
40.   Real Estate is More Forgiving then Stock:  When you invest in real estate and buy properties right, if the market takes a downward spiral, this will happen over time, not in just a few days.  The real estate market is more forgiving then the stock market because stocks can drop significantly in just a short time.
41.    Cause Billionaire Donald Trump says Be Bold and Buy Real Estate NOW:  Real estate entrepreneur Donald Trump says to be bold, fight fear, and invest in real estate.   
42.   Commercial Real Estate has Only Begun to Enter a Cyclical Downturn:  It’s safe to say that the residential real estate market won’t fully recover till the commercial market begins it’s upturn.  Commercial properties began to go south after residential market was slammed.  So it is safe to assume that when the commercial market begins an upturn, the residential market will be nearly fully revitalized.
43.   Investments made when the Market is Down are more Profitable:  A number of investors are just sitting, waiting on the market to turn.  The fact of the matter is, once the market begins to pick up, all of the great deals will be taken by investors such as myself.  A change in direction of the real estate market is similar to an oil ship changing directions, it’s a slow process.  You won’t realize the oil ship has changed directions till after it has changed.  The same for real estate, you won’t recognize the change till after it has already begun.
44.   There’s an Upward Trend in Rental Rates:  Due to increased demand for rented spaces, rental rates are climbing.   This is related to the increased preference of most families to rent home spaces amidst the difficulties that is hounding the real estate industry, foreclosures.
45.   Multiple Properties Create Multiple Streams of Income:  If you dedicate to purchasing one (1) house per month for a year, and rent or sell them via owner financing, you can create multiple streams of income that will surpass your 9-5 income. 
46.  Capitalizing on the Gains:  When stock doubles in value, in order to benefit from that increase, you generally have to sell the asset, or at least a portion of it.  When your real estate doubles in value, you do not have to sell at all.  You simply go back to the bank and refinance.
47.   Leverage:  Using leverage, while being careful to  buy properties with good rental yields, provides greater returns.  Using $100K to purchase three properties with down payments, instead of one for $100K cash, can greatly increase returns. 
48.   Seller Expectations:  Most sellers including banks are now working harder than ever to move their properties.  This not only translates into lower sales prices, but more concessions.
49.   Real Estate Investing Education is very Plentiful:  If you want to learn how to invest in real estate, there’s tons of information right at our fingertips via the Internet.  There’s no reason why someone can’t get educated in real estate investing with little funds. 
50.   BECAUSE THIS IS AMERICA!:  We live in America, the land of endless OPPORTUNITES.  Take advantage of that, and live the American dream, invest in real estate!

Although the fear-mongers are intent on leading you to believe that now is NOT the time to invest in real estate, don’t allow them to discourage you from getting started, or moving forward with your decisions to capitalize on the current real estate market.  We offer wholesale real estate at 30 – 50% of current market value, sign up on our VIP Buyers list today!

I want to hear from you.  If you can come up with additional reasons to INVEST IN REAL ESTATE right now, please leave them in the comment section for the entire community to see.  Thanks for your input.